Ride-sharing business is getting more popular since many big companies also trying to enter into this sector, but so far there are only two companies which ruling this industry and those Lyft and Uber. Lyft recently released its first-quarter earnings report of 2019, and it’s showing a good picture. Lyft which recently become a public company has booked its first-quarter losses for its general investors who might not have liked it all. The report shows that Lyft managed to earn a revenue of $776 million, versus $739.4 million as expected. Even if company succeed in making more revenue, it booked lots of expenses which analyst did not predict it would. Lyft managed to give its investors a loss per share of $9.02 vs.
The analysts’ estimation of $1.81 loss per share. Now it seems like analysts made a massive mistake in predicting the loss of Lyft which investors did not like all because shares of the company fell by more than 1 percent. Lyft is that ride-sharing company which so far hasn’t recorded any amount of profit before it gets listed on NASDAQ. The company managed to get a fair valuation on stock exchange when general investors oversubscribed to company’s shares.
However, still, many analysts predicted it would record loss in between $0.63 to $4.73 per share but seem like the company has shocked everyone even financial experts also. Chief Financial Officer Brian Roberts has already warned that losses of the company would peak in 2019 so there is no surprise that lyft has booked such a tremendous amount of loss in first quarter of 2019. The active user base of the company is increasing despite such high losses because now Lyft has more than 20.5 million aggressive riders in the country. Lyft has decided to collaborate with alphabet self-driving car company Waymo which will surely have a positive impact on its performance.
